With the long-term financial impact of Covid:19 still being unknown have you thought about your company structure and if there are commercial benefits to splitting the assets from the trading entity?
Many companies may have considered this before, but decided against re-organising the group as they have always been comfortable with the financial performance of the trading company, but given this period of uncertainty we are going through and the potential for more over the coming months- it should be revisited.
How many of your customers are going to experience difficulties over the coming months, which might then impact on your business?
By moving the assets, which could include property, excess cash and other assets away from the trading company into either a holding company, or another subsidiary of the group it can offer protection in the event that the trading company subsequently fails and may mean your hard earned assets are preserved. If they remain in the trading company and it fails, they will inevitably be lost in the subsequent liquidation, or at least go a long way to settling creditor claims.
Please get in touch with Michael Watts or Paul Reynolds if you would like to have an initial discussion about your structure.
The economy might be in for a rocky period, so have you thought about your company structure and protection of assets?